Admitted Rajaratnam Tipster Settles SEC Insider-Trading Case

May 18 2010 | 11:12am ET

Anil Kumar, the former McKinsey & Co. executive who said that Galleon Group founder Raj Rajaratnam paid him for insider tips, will pay $2.8 million to settle civil charges related to the case.

Kumar agreed to pay $2.6 million in restitution and more than $190,000 in prejudgment interest to settle the Securities and Exchange Commission lawsuit, filed against him after he was arrested last year and charged with passing on confidential information about McKinsey clients to Rajaratnam.

Kumar pleaded guilty in January to conspiracy and securities fraud as part of a plea deal with prosecutors. He told a judge that the Galleon founder paid him as much as $2 million for tips between 2004 and last year—an allegation that Rajaratnam, who has pleaded not guilty, denies.

Kumar faces up to 25 years in prison when he is sentenced, but is likely to get far less due to his cooperation with the investigation.


In Depth

GSAM's Papagiannis: Liquid Alternatives For The Long Run

Apr 21 2017 | 8:44pm ET

Interest in liquid alternatives cooled a bit last year amid a broad shift in investor...

Lifestyle

Aston Martin Returns To Debt Market As DB11 Drives Turnaround

Mar 31 2017 | 5:21pm ET

James Bond’s preferred carmaker is returning to the public debt markets for the...

Guest Contributor

Debunking Conventional Investment Wisdom (Part II)

Apr 17 2017 | 5:56pm ET

The alternative investment industry is currently replete with buzzwords around data...

 

From the current issue of